In a significant shift on the global economic stage, India is poised to become the world’s third-largest economy within the next three years, overtaking traditional powerhouses Germany and Japan, according to the latest projections from the International Monetary Fund (IMF).
Currently ranked as the fifth-largest economy, India’s nominal GDP is expected to reach $4,187 billion in 2025. The IMF’s World Economic Outlook forecasts India’s steady rise, estimating that it will overtake Japan by 2026 with a GDP of $4,601 billion, and Germany shortly after, clinching the third spot by 2028 with an estimated GDP of $5,584 billion.
Despite India’s rapid growth having doubled its nominal GDP over the past decade, it remains far behind the two leading economies. The United States is projected to maintain its dominance with a GDP of $30,507 billion in 2025, while China follows with $19,231 billion. Even by 2025, the U.S. economy is expected to be 7.3 times larger than India’s, with China’s economy about 4.6 times bigger.
The United States, China, Germany, Japan, and India will head the top five places for 2025. Yet, Germany’s and Japan’s spots are in danger of being immediately dethroned, with India’s economic growth going from strength to strength at a rate unmatched by any large economy.
The broader list of the world’s largest economies in 2025 includes:
- United States – $30.5 trillion
- China – $19.2 trillion
- Germany – $4.7 trillion
- Japan – $4.2 trillion
- India – $4.2 trillion
- United Kingdom – $3.8 trillion
- France – Approximately $3.3 trillion
- Brazil, Italy, and Canada round out the top ten.
Notably, Brazil reclaims a spot among the top 10, signaling renewed momentum in Latin America’s largest economy.
These changes are consequential for world trade, flows of investment, and geopolitics, with India’s increasing economic influence set to shape global policymaking in the years to come.
The IMF’s estimates underscore India’s resilient growth trajectory despite global economic headwinds. As private consumption, services, and manufacturing continue to expand, India’s economic profile is steadily converging with advanced economies.
Also Read: How the Next Pope Will Be Chosen?
